USPAP Advisory Option 17: Current or Prospective Value ?

[J Grant]

Check both hope that is a joke lol....

When completion is done on a subject to completion appraisal, we don't go back and literally change the appraisal...but the inspection cert of completion fulfills the HC, meaning the " as is" with pool exists now...vs an HC which did not have subject to completion, there is sill no pool if they never build one.

The inspected completion cert gets attached to the original appraisal /n file with it to make the HC no longer in affect ( thus now is an as is" property .)

 

[Terrel L. Shields]

So on that basis all prospectives will not be hypothetical, either.

I totally agree but 'prospective' means a valuation date in the future. It does not mean a hypothetical property as if it existed upon the date the report was prepared. I've done very few true prospective reports. I actually do have a prospective appraisal I am working on where they want me to predict the future value of a property 1 year from a value current.

 

[J Grant]

I totally agree but 'prospective' means a valuation date in the future. It does not mean a hypothetical property as if it existed upon the date the report was prepared. I've done very few true prospective reports. I actually do have a prospective appraisal I am working on where they want me to predict the future value of a property 1 year from a value current.

Eggsactly. There are few future eff date (prospective value ) assignments, - back to first post and the AO question it is a confusion( in the minds of some) regarding an HC about a repair or completion creating a "future value" (it does not unless a prospective date is the assignment ) An HC for repair or complete is an additional assignment condition no matter the effective valuation date.

assignment : Current (or prospective or retrospective ) value of 123 Cherry Lane it has no pool and valued" as is" with no pool - thus no HC

Now a client wants to know value of 123 Cherry Lane as if it has a pool Thus it is valued with an HC of a pool.. The HC is there whether the valuation effective date is current or prospective (or retrospective ).

If part of assignment is to ensure the work is physically completed, then HC would be a pool /subject to completion . The fact that the completion date will be at a future time is what might cause the confusion. But the future " as complete" references only the physical work itself, it does not change the effective date of the valuation.

 

[George Hatch]

I totally agree but 'prospective' means a valuation date in the future. It does not mean a hypothetical property as if it existed upon the date the report was prepared. I've done very few true prospective reports. I actually do have a prospective appraisal I am working on where they want me to predict the future value of a property 1 year from a value current.

I think we're saying the same thing.